. What is Different Types of Banking What is Para Banking ? What is Narrow Banking ? What is Green Banking ? What is Offshore Banking ? What is Retail Banking ? What is Wholesale Banking ? What is Investment Banking ? What is Universal Banking ? What is Islamic Banking ? Retail Banks When you picture a bank, a retail bank probably comes to mind. Retail banks offer members of the general public financial products and services such as bank accounts, loans, credit cards and insurance. In some cases, they can set up checking accounts and make loans for small-scale businesses as well. Retail banks can be traditional, brick-and-mortar brands that customers can access in-person, online or through their mobile phones. Others only make their tools and accounts available online or through mobile apps. Commercial Banks Although there are some types of commercial banks that help everyday consumers, commercial banks tend to concentrate on supporting businesses. Both large corporations and small businesses can turn to commercial banks if they need to open a checking or savings account, borrow money, get access to credit or transfer funds to companies in foreign markets. Shadow Banks The shadow banking system consists of financial groups that aren’t bound by the same strict rules and regulations that other banks have to comply with. Much like the standard regulated banks, shadow banks deal with credit and different kinds of assets. But they get their funding by borrowing it, connecting with investors or making their own funds instead of using money issued by the central bank. Money market funds and hedge funds are two kinds of shadow banks. More recently, they’ve been a source of controversy for quite a few people. Many folks blame the less-regulated shadow banking industry for playing a role in the mortgage crisis leading up to the Great Recession. Investment Banks Investment banks like Morgan Stanley and Goldman Sachs have many responsibilities. On one hand, they manage the trading of stocks, bonds and other securities between companies and investors. On the other hand, they might focus their energy on advising individuals and corporations who need financial guidance, reorganizing companies through mergers and acquisitions, managing investment portfolios or raising money for certain businesses and the federal government. Cooperative Banks Cooperatives can be either retail banks or commercial banks. What distinguishes them from other entities in the financial system is the fact that they’re typically local or community-based associations whose members help determine how the business is operated. They’re run democratically and they offer loans and banks accounts, among other things. They’re popular in countries throughout the world and in the U.S. they usually take the form of credit unions.